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Accumulation of human capital and its influence on regional economic development disparity

Aug 25,2014

By Li Jianwei, Wang Shuhe 

Date: 2005/02/21

Abstract:

In recent years the regional economic development disparity in China is again widening. Of the many reasons responsible for that, poor education and limited human capital accumulation in the central and western regions are the critical reasons. A regression analysis shows that the higher the level in education and the greater the number of professional people in a province, the more advancement is the local economic development. When the gap widens in the number of higher educated people and professional staff across the regions, the divergence in regional development could be increased and even multiplied. The fundamental policy for bridging the gap lies in raising the education level and human capital accumulation in the central and western regions so as to curb the widening difference of human capital accumulation across the regions.